India Infoline Ltd (IIFL) is exiting from its Sri Lankan brokerage arm IIFL Securities Ceylon (Private) Ltd by divesting its entire holding to its local joint venture partner Priyani Ratna-Gopal for SLR 50 million (Rs 2.37 crore or $38.2K), as per a stock market disclosure.
IIFL Securities Ceylon was set up in July 2010 as a joint venture between IIFL and Priyani Ratna-Gopal, who doubles up as the chief executive of the venture. IIFL became the first foreign broker to enter Sri Lanka with the JV which is currently engaged in stock broking activities at the Colombo Stock Exchange.
"Both the parties have entered into an agreement and set the timeline of March 31, 2014 for the conclusion of the sale," the company said in a filing on Monday.
The deal is subject to the necessary approvals from the regulatory authorities in Sri Lanka and India and other terms and conditions.
Carlyle-backed IIFL is a diversified financial services firm offering brokerage, investment banking, wealth management, asset management, insurance distribution and alternative assets management.
(Edited by Joby Puthuparampil Johnson)